Home & Housing Calculators
Refinance Break-Even Calculator
Estimate how long it may take for refinance savings to outweigh closing costs, and compare monthly payment, interest, and long-term cost differences.
A lower mortgage rate can look attractive, but refinancing usually comes with closing costs, a new loan term, and sometimes a different long-term interest path. This calculator estimates your monthly savings, break-even point, and total cost difference based on your inputs.
Educational estimate only. This calculator is not mortgage, tax, legal, financial, or professional advice.
This calculator focuses on principal and interest. Taxes, insurance, HOA dues, and other housing costs are usually not changed by a refinance unless you model them separately.
Jump to resultsCurrent mortgage
Leave the payment override blank to estimate payment from balance, rate, and remaining term.
Leave blank to estimate. Current estimate: $2,676.
New refinance offer
Leave blank to estimate from balance, cash out, and financed costs.
One point is usually 1% of the loan amount.
Closing costs
Closing costs can include lender fees, appraisal, title, recording, and other refinance costs. This calculator uses your entered estimate.
Ownership timeline
The break-even point matters more if you might sell, move, or refinance again before the new loan reaches maturity.
Scenario presets
Use a preset to move quickly, then edit the numbers. Presets replace assumptions rather than compounding them.
Frequently asked questions
What is a refinance break-even point?+
It is the estimated point when refinance savings have recovered the upfront or financed costs of refinancing. This calculator estimates it month by month.
Is refinancing always worth it if the rate is lower?+
No. Closing costs, points, a new loan term, cash-out borrowing, and how long you keep the loan can all change the result.
What closing costs should I include?+
Include lender fees, appraisal, title, recording, points, and other refinance costs you expect to pay or finance.
Should I refinance into a new 30-year loan?+
A new 30-year loan may lower the monthly payment, but it can also extend the payoff path. This calculator shows payment, balance, and interest tradeoffs.
What happens if I roll closing costs into the loan?+
Financed closing costs are added to the new loan balance. That can reduce upfront cash needs but may increase interest and the balance owed.
How does cash-out refinancing change the math?+
Cash-out refinancing increases the new loan amount. This calculator includes that extra balance instead of treating it like a simple rate reduction.
Does this calculator include taxes or insurance?+
No. It focuses on principal, interest, closing costs, loan balance, and timeline. Taxes, insurance, HOA dues, and escrow changes are not included.
Is this mortgage advice?+
No. This calculator is for educational estimates only and is not mortgage, tax, legal, financial, or professional advice.